Events

Franklin Resources assets drop 2% in quarter, 6% for the year

Franklin Resources Inc. reported its assets under management fell to $720 billion as of Dec. 31, down 2% from the previous quarter and 6% from a year earlier, as net outflows slowed but continued, according to financial statements released Friday.

The San Mateo, Calif.-based company reported $14.4 billion in net outflows in the fourth quarter of 2016, down from $17.7 billion in net outflows in the Sept. 30 quarter and $8.9 billion in net outflows in the year-over-year quarter.

Franklin has been among the hardest hit money managers in terms of net outflows due to performance issues in key funds and a shift by investors toward passive strategies. But Franklin CEO Greg Johnson, in prepared remarks accompanying the company's earnings release, said the firm has been experiencing a strong rebound in performance among key funds, including the $40.9 billion Templeton Global Bond Fund, which outperformed its Lipper peer group average by 1,300 basis points during the most recent quarter.